Lesson of the Day: Even if you make millions of dollars…either in a lucrative business or by winning the lottery…these millions do NOT guarantee financial security.
Apparently actor Nicholas Cage has lost two homes in New Orleans to foreclosure, owes significant back taxes on other homes, and is about to lose properties in California and Las Vegas.
How does this happen? The same way it happens to “regular” people: living above your means, not saving enough, and experiencing stretches of unemployment.
Of course, Cage has filed a lawsuit against his former business “manager” who he claims swindled him out of millions of dollars and has put him into financial ruin. Although not many of us “regular” people have the need for business managers, we can still learn a lesson here: interview many people before hiring and be fully involved in the details of your business.
Interview multiple accountants and attorneys and determine if they can be trusted and are ethical. If you own multiple properties, interview many property managers and go with your gut about who you can trust the most and work with the best. Set regular business meetings or conference calls to discuss your business and financial status.
Don’t just hand off your business…and your livelihood…to complete strangers.
If you would like to read the full story, click here.
Hey Trevor,
I got sucked in by the “Movie Stars” phrase in your blog post title and just had to read about it! Good post by the way. And everything you mention is true. Not only should you stay involved in your business (at least by getting regular updates and meeting with your “peeps”) as you say, but no one, and I mean no one, is going to care as much as you do about your money (Nic Cage should know this by now, shouldn’t he???).
I would also add to your points about interviewing multiple people/firms for your various team member positions (legal, accountant, PM, etc.) and checking your gut, but you should also look for recommendations when starting your search from people that you trust. Ideally, when you ask for a recommendation, ask the recommender not only “why” they recommend that person, but what is their relationship with them? That is, have they used that accountant/lawyer/PM themselves or ??? Get some detail on why they recommend them. This will give you some additional insight into whom you should hire.
Cheers!
Hey Dave!
Great to hear from you!
Ya… crazy stuff… and totally agree w/ you. People need to be responsible for these kinds of things and it all boils down to your hiring practices.
Thanks for the comment!
– Trevor